Politics and opinions

Main menu

Monthly Archives: November 2017

As the GOP Congress continues to push a tax plan that is based on the lie that it will create jobs by cutting taxes on large corporations and the very wealthy, I think it’s important to understand how the tax “reform” plan came about. In reality, it was spawned decades ago by the libertarian billionaires who now fund Republican candidates. And it was released on an unsuspecting public by the conservative-controlled Supreme Court with its rulings in the Buckley v Valeo and Citizens United v FEC.

In the first of these decisions, the Court ruled that money = free speech. In effect, that gave the wealthy the ability to choose political candidates. In the second case, the Court ruled that corporations = people. And, since large corporations are controlled by wealthy executives and shareholders, the decision gave them even more power to choose candidates and to sway election results.

Not surprisingly, the Koch brothers and a few other billionaires seized the opportunity.

Until those Supreme Court decisions, the Kochs, Sheldon Adelson, the Mercer family, the Prince family, the DeVos family, and others had, for the most part, been unable to buy elections. Even when David Koch ran for president on the Libertarian Party ticket in 1980, he could not use his billions to gather votes. So he chose a different strategy. He vowed to use his money to place candidates in state and local offices then bide his time until those people could work their way into higher offices.

The Supreme Court decisions gave him the opportunity to accomplish in a few years what might have taken decades.

Billionaires and corporations now control more than 30 state legislatures through the American Legislative Exchange Council, which writes most of their legislation. Billionaire-sponsored candidates now control the US Senate and the House of Representatives. Billionaire-backed candidates have proliferated in the court system. And with the help of the Russians, a billionaire-backed candidate now sits behind the Resolute Desk in the Oval Office. (At least when he’s not golfing or spending his time – and taxpayer money – at one of his resorts.)

Given all of this, it seems that a look at David Koch’s Libertarian Party platform from 1980 might shed further light onto the GOP tax plan and the GOP vision for the future of the United States. Here are some excerpts from that platform:

• “We urge the repeal of federal campaign finance laws, and the immediate abolition of the despotic Federal Election Commission.”
• “We favor the abolition of Medicare and Medicaid programs.”
• “We oppose any compulsory insurance or tax-supported plan to provide health services, including those which finance abortion services.”
• “We also favor the deregulation of the medical insurance industry.”
• “We favor the repeal of the fraudulent, virtually bankrupt, and increasingly oppressive Social Security system. Pending that repeal, participation in Social Security should be made voluntary.”
• “We propose the abolition of the governmental Postal Service. The present system, in addition to being inefficient, encourages governmental surveillance of private correspondence. Pending abolition, we call for an end to the monopoly system and for allowing free competition in all aspects of postal service.”
• “We oppose all personal and corporate income taxation, including capital gains taxes.”
• “We support the eventual repeal of all taxation.”
• “As an interim measure, all criminal and civil sanctions against tax evasion should be terminated immediately.”
• “We support repeal of all laws which impede the ability of any person to find employment, such as minimum wage laws.”
• “We advocate the complete separation of education and State. Government schools lead to the indoctrination of children and interfere with the free choice of individuals. Government ownership, operation, regulation, and subsidy of schools and colleges should be ended.”
• “We condemn compulsory education laws … and we call for the immediate repeal of such laws.”
• “We support the repeal of all taxes on the income or property of private schools, whether profit or non-profit.”
• “We support the abolition of the Environmental Protection Agency.”
• “We support abolition of the Department of Energy.”
• “We call for the dissolution of all government agencies concerned with transportation, including the Department of Transportation.”
• “We demand the return of America’s railroad system to private ownership. We call for the privatization of the public roads and national highway system.”
• “We specifically oppose laws requiring an individual to buy or use so-called “self-protection” equipment such as safety belts, air bags, or crash helmets.”
• “We advocate the abolition of the Federal Aviation Administration.”
• “We advocate the abolition of the Food and Drug Administration.”
• “We support an end to all subsidies for child-bearing built into our present laws, including all welfare plans and the provision of tax-supported services for children.”
• “We oppose all government welfare, relief projects, and ‘aid to the poor’ programs. All these government programs are privacy-invading, paternalistic, demeaning, and inefficient. The proper source of help for such persons is the voluntary efforts of private groups and individuals.”
• “We call for the privatization of the inland waterways, and of the distribution system that brings water to industry, agriculture and households.”
• “We call for the repeal of the Occupational Safety and Health Act.”
• “We call for the abolition of the Consumer Product Safety Commission.”
• “We support the repeal of all state usury laws.”

The Putin-led meddling in the 2016 elections by the Russians represents a very real threat to our democracy. But no greater threat than that of our billionaire-controlled GOP government.

For weeks, the GOP Congress has been working behind closed doors to craft a tax “reform” bill. They promise that their bill will “give everybody a raise.” They claim that it will simplify tax codes so much that you will be able to “file your income taxes on a postcard.” And they claim that the tax cuts will accelerate the economy so much that they will pay for themselves.

We’ve heard all of this before. Remember Ronald Reagan’s trickle-down economics? Or how about George W. Bush’s tax cuts?

Instead of stimulating the economy, those plans merely stimulated the bank accounts of the very wealthy while ballooning deficits and our national debt. And though we haven’t yet begun to pay for those tax cuts, the GOP is back with more cuts and more empty promises.

Indeed, most economists who have looked at the GOP plans have concluded that they will result in adding at least $1.5 trillion to the federal deficit over the next 10 years. Further, the nonpartisan Tax Foundation concluded that the impact on economic growth would only pay for about a third of the costs. In other words, in a best case scenario, the tax cuts will add more than $1 trillion to the deficit. And some economists worry that the tax cuts could actually slow economic growth based on increased debt and government borrowing which will result in higher interest rates!

Undeterred, the GOP responded by saying, “We don’t expect the plan to pay for itself. The only way to reduce the deficit is through spending cuts.” What they’re really saying is, “We don’t care about the consequences, the billionaires who fund our campaigns demand tax cuts.” Indeed, the GOP has admitted as much. Both the Mercers and the Kochs have threatened to stop funding GOP candidates unless they get what they want.

And fear of the sponsors is only part of the reason the GOP is in such a hurry to pass the tax cut bills. The temporary spending bill that is funding our government expires on December 8, and the GOP has made tax reform mandatory for a budget deal.

Moreover, by rushing a bill through Congress with little debate, the GOP can bury some unsavory items in the bill. For example, the Senate is considering repealing the Affordable Care Act’s individual mandate, which would for all intents and purposes repeal Obamacare.

The House tax bill would also repeal the Johnson Amendment which prohibits churches and other nonprofits from endorsing or opposing candidates for public office. Though the amendment is seldom enforced – pastors, especially evangelicals and conservative Catholics have been politicking from the pulpit for years without consequences thanks to GOP. This provision could impact our elections as negatively as the Supreme Court’s Citizens United decision that opened the floodgates for campaign donations by nonprofits – all of which can be made anonymously through money laundering from one nonprofit to another.

The House tax bill even includes an abortion poison pill. It has a provision that would, for tax purposes, give a fetus “personhood.” That would make any abortion, for any reason, murder.

However, the most disingenuous claim made by the GOP is that their tax plan will give most working Americans a $4,000 raise – a claim refuted by most economists. But let’s, for a moment, assume that it’s true. Who wouldn’t be in favor of giving less money to the government and having more money to spend on themselves? But what if getting that money meant that there would be a cut to most government services combined with increases in fees?

What if they told you that $4,000 tax cut would be offset by eliminating tax deductions for home mortgage interest, and for state and local tax payments – deductions that could total far more than $4,000. What if they told you that there wouldn’t be enough federal revenue to rebuild our infrastructure and that the result would be toll roads? What if they told you that cutting taxes would result in less money for medical research, less money to help with natural disasters, less money for environmental clean-ups, and less money for food safety inspections?

What if they told you that the tax cuts would mean that the cost of your health care and prescriptions would, once again, skyrocket? What if they told you that, as part of the tax cut, your Social Security savings would be given to millionaires and billionaires? What if they told you that you would be asked to subsidize big bonuses for the executives of multinational corporations? What if they told you that you might have to pay for your parents’ medical costs because their Medicare would be gutted? What if they told you it would mean the end of veteran’s benefits? What if they told you there would be no more money for food stamps and welfare, so millions of Americans would have to beg for food or die? What if they told you that that their tax cut would result in trillions more in debt for your children and grandchildren?

All of those things are likely under the GOP tax plans.

If that doesn’t give you pause, ask yourself this: Since the people writing the bills are millionaires who were put into office with the help of billionaires, do you really think they have your best interests at heart? And, if the GOP ideas for tax reform are so good, why are they being crafted in back rooms out of the view of the public? Why have they not included Democrats in the discussions?

Perhaps the best question of all is one posed by Catherine Rampell of the Washington Post in a recent editorial: “If the tax bill is so great, why does the GOP keep lying about it?”

Former Trump campaign chairman, Paul Manafort, and his business partner, Rick Gates, have been indicted with 12 counts including conspiracy against the US, conspiracy to launder money, false statements and failure to file reports of foreign bank and financial accounts. These are serious charges and, likely, they would not have been filed if the special counsel was not certain that he could obtain convictions.

As serious as those charges are, it’s important to note that Trump could well be guilty of many of the same things.

With regard to money laundering. Trump mysteriously received multi-million-dollar loans from Deutsche Bank – a bank fine $10 billion for Russian money laundering – after failing to obtain business loans from every large bank in the US. In addition, Trump sold multiple properties to Russian oligarchs at prices dramatically higher than market value.

As for failure to file reports of foreign bank and financial accounts, Trump’s name appeared 3,450 times in the Panama Papers – leaked documents that exposed financial accounts associated with offshore tax havens. It’s possible that his name appears simply because of the wide range of his international business activities. But why else would his name be listed if he was not involved in tax evasion?

Though Manafort’s indictment doesn’t include criminal activity with criminal mob figures, it has been reported that Manafort has ties to Russian mobsters. Likewise, it has been long reported that Trump has ties to mobsters. Indeed, given the fact that he is a developer in New York City and in New Jersey, it would be surprising if he didn’t.

Both Trump and Manafort have enjoyed lavish lifestyles. And both men have faced financial setbacks – failures that made them desperate enough to engage in illegal activity.

And though Manafort is charged with conspiracy against the US based on his failure to file reports of foreign bank and financial accounts, serving as an unregistered agent of the pro-Russian government of Ukraine, and false and misleading statements regarding the foreign agent registration act, it pales by comparison to potential charges against Trump.

Trump’s conspiracy likely involves working with a US rival to undermine our democracy and to steal the highest office in the land. So far, much of the evidence is circumstantial, but that evidence is overwhelming.

For decades, taxation in the US has been based on a progressive tax structure, which means those who earn the most money pay the highest taxes. And those less fortunate pay the least. Similarly, corporations were taxed to help pay for the government-provided infrastructure they needed to operate. When the nation incurred substantial debt, the Congress raised taxes to reduce that debt. For example, following World War II, tax rates were raised to pay down the debt. Through the Eisenhower administration, the nation’s highest tax rate exceeded 90 percent. Yet, despite such high tax rates, the economy boomed.

Then, in the 1980’s everything changed. Based on a discredited economic theory known as trickle-down economics, Republicans began to cut taxes (and revenue) under the guise of “tax reform.” They cut the top income tax rate, as well as estate taxes and capital gain taxes – all for the benefit of the wealthy. At the same time, they repealed usury laws and eliminated the tax deductions for interest on all loans except home mortgages. All the while promising that the cuts would benefit middle Americans.

They didn’t.

Not only did they transfer much of the tax burden from the wealthy to the middle class. The national debt soared. As a result, even those who originated the idea of Reagan’s trickle-down economics were forced to admit that the plan failed.

Unfortunately, Republicans have never abandoned the theory. For years, they have continued to promote the trickle-down fairy tale. They not only signed Grover Norquist’s misguided “No New Taxes” pledge. They continue to promote tax cuts as the elixir for any economic ailment. Is the economy suffering? Tax cuts will help. Is unemployment too high? Tax cuts are the answer. Is the economy booming? Tax cuts will make it even better. As a result of all this tax cutting, our national debt has continued to climb – slowing only when Democrats are in power.

Fast-forward to today. Republicans are proposing yet another tax “reform.” And just like the “reforms” of the past, it looks a lot like another round of tax cuts for corporations and the very wealthy. Indeed, if this tax plan passes and is signed into law, the deficits will, once again, soar. And the national debt will be increased by trillions. According to a report from the Urban Tax Policy Center, “Over the first 10 years, the individual income tax provisions — excluding those related to the taxation of corporations, pass-throughs, and estates — would raise $470 billion, the business provisions would reduce revenues by $2.6 trillion, and repealing the estate tax would cost another $240 billion.”

As far as I can tell, this is all part of the GOP long-range plan.

The Republicans seem concerned with deficits and debt only if they can be used as a hammer to bludgeon Democrats when they are in control. (Remember the outrage when President Obama used TARP funds to save the US auto industry? Though the impact of the bail-out on our national debt was negligible, Republicans howled that it would be a burden to future generations.) In reality, I believe the GOP plan is to push our nation more deeply into debt. Then, and only then, will they be able to reach their long-term goal of reducing the government to a size small enough that, in Grover Norquist’s words, “it can be drowned in a bathtub.” Only when the debt has reached an unsustainable level will the GOP have the ammunition needed to slash government programs regardless of their popularity or need. That is when they will be able to argue the necessity of ridding the nation of safety nets such as Social Security, Medicaid, Medicare and all the varieties of welfare.

If you doubt this is the Republican goal, consider the Ayn Rand-like philosophy of the billionaires who finance the Republican Party. As mentioned in a previous post, the Koch brothers believe that government is unnecessary for anything but national defense, law and order, and social stability. And, by some counts, there are 16 people in the White House with ties to the Koch brothers. In addition, there are many more in the Republican congressional delegation who are beholding to the brothers grim of oil refining.

You must also consider that Trump’s presidential campaign was heavily funded by Robert Mercer, a man who has stated that he wants to shrink the government to the “size of a pinhead.” Worse, he apparently thinks that human beings have no intrinsic value – believing that an individual’s value should be based solely on income. In other words, someone who earns $2 million per year is 20 times more valuable than someone earning $100,000 per year. And he believes that anyone on welfare is worth less than nothing.

Obviously, the Kochs and Mercers spent hundreds of millions to elect today’s Republicans with the expectation that the Republicans would do their bidding – that they would reshape government to fit their ideas and to lower their taxes. If you think that means the Republican tax proposal will benefit you, think again.